Mongolia Launches $1.5 Billion, Two-Part Deal at Tighter End of Price Talk
Mongolia's $1.5 billion debt issuance began Wednesday afternoon, and is expected to generate interest among investors looking for higher yielding assets from emerging economies.
The deal was launched Wednesday afternoon, New York time, at a yield of 4.125% on the five-year, $500 million part. The 10-year part, of $1 billion size, is expected to sell at 5.125%, according to sources familiar with the deal.
The issue is expected to be priced shortly.
The demand for the bond comes despite Mongolia's spotty fiscal past. The country has been rescued five times in 22 years by the International Monetary Fund, and its bond offering is an amount equal to nearly one-fifth of the size of its economy. The recent growth in the country's economy, however, compensates for these concerns.
--Alex Frangos contributed to this article.
Write to Prabha Natarajan at prabha.natarajan@dowjones.com
The deal was launched Wednesday afternoon, New York time, at a yield of 4.125% on the five-year, $500 million part. The 10-year part, of $1 billion size, is expected to sell at 5.125%, according to sources familiar with the deal.
The issue is expected to be priced shortly.
The demand for the bond comes despite Mongolia's spotty fiscal past. The country has been rescued five times in 22 years by the International Monetary Fund, and its bond offering is an amount equal to nearly one-fifth of the size of its economy. The recent growth in the country's economy, however, compensates for these concerns.
--Alex Frangos contributed to this article.
Write to Prabha Natarajan at prabha.natarajan@dowjones.com
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